Venture Capital Quizzes-What clause gives a venture capitalist

Answer to Quiz

What clause gives a venture capitalist the right to require the company to repurchase their security on a given date?

Answer: (b), redemption rights
"Redemption" refers to the purchase of securities by an issuing company from the holder, at a time and price stipulated in the original terms of the securities. The redemption price is the price at which debt securities or other securities are redeemable. A redemption right thus is the right of the venture capitalist to force the company to repurchase his security at a future date at a stated redemption price.

Next Quiz:

The largest shareholder in the parent company of MySpace, before it was sold to Fox, was which venture capital firm?

(a) VantagePoint Venture Partners
(b) Kleiner, Perkins, Caulfield & Byers
(c) Sequoia Capital
(d) Benchmark Capital

Word of the Day

Convertible Bond

A "convertible bond" is a debt obligation of a corporation that can be exchanged for a...

Convertible Bond

Newsletter